Lump-Sum Distribution

A lump-sum distribution is when you receive the total value of a retirement account or pension all at once, rather than through ongoing payments. It provides immediate access to the full amount, which you can then choose to save, invest, or spend as you wish. This option offers flexibility but also requires careful financial planning to manage the funds over time. It’s often used when changing jobs, retiring early, or if the account holder prefers control over their money rather than receiving periodic payments.